In July, air fares and food prices increase by 3.8%

Prices in the UK increased by 3.8% in the year in July, mainly operated by air fares and a jump in the price of food.

This means that inflation has been at its highest level since January 2024 and is still above the 2%target of Bank of England.

According to the office of the National Statistics (ONS), the cost of eating out, as well as food and non-or-drug beverages, helped to push more in prices.

Beef, chocolate and confectionery, instant coffee and fresh oranges saw that some of the biggest prices increase.

In the Consumer Price Index, the growth of July (CPI) inflation was slightly higher, as most economists predicted and compared with an increase of 3.6% in June in June.

The bank’s latest forecast is expected to reach 4% of inflation in September.

ONS chief economist Grant Fitzner said that between June and July, a “heavy” increase of 30.2% in air fares was the biggest jump for that period as the collection of monthly data began in 2001.

He said that it is “likely to be due to this year’s school holiday time”.

This year, the collection day for ONS data was overlaps with the onset of school holidays, which they did not do last year.

He said that the price of petrol and diesel had also increased, compared to a drop this time last year, he said.

The cost of food and non-alcohol beverage rose in July 4.9% in the year, increased from 4.5% in June to June. This was the fourth month in a row with an increase in food and drink inflation, causing prices to rise since February 2024.

Danny Hevson, head of AJ Bell of Financial Analysis, stated that “the weekly visit to the local supermarket … gives most of us the greatest insight into our life cost”.

“With the UK farmers highlight the expected effect of a dry heat on food production, it will worry in many homes that it is a long time to take a long time before opening these high prices.”

Growing food and fuel prices are the finance “stretching” of Mitchell Birkenhead.

But she says that creating budget for her family is the key to managing her money and planning ahead for social activities.

“It’s very expensive,” Michel says. “It has gone very high, it is ridiculous. Two years ago, a weekly shop of £ 100, we are looking £ 150.”

Bank of England takes into account inflation and other economic figures while deciding what to do about what to do about interest rates.

Earlier this month, he narrowly cut rates, below 4.25%, reduced rates by more than two years.

Inflation has now predicted a 4% hit in September, which will not usually cut further interest rates.

However, at the same time, the economy is struggling to grow and the jobs of jobs are uncertain, which will usually encourage the bank to cut rates to encourage expenses.

Bank of England governor Andrew Bailey told the BBC that the decision to cut the rates of this month is “finely balanced” and that the future syllabus of interest rates was “a little more uncertainly uncertain”.

“Interest rates are still downwards,” he said. “But the cut in any future rate will be needed to gradually and carefully.”

Reacting to the latest figures, Chancellor Rachel Reves said that the government has “taken the necessary decisions to stabilize public finance, and we are setting a long way with a double -digit inflation seen under the previous government”.

But he said: “There is more to reduce the cost of life.”

Shadow Chancellor Mail Streed stated that the news on inflation was “deeply worrisome for families”.

“Labor’s choice and ramp cost for tax jobs is increasing and stopping inflation – making everyday imperative more expensive.”

Liberal Democrat Treasury spokesman Daisy Cooper said there was a serious news for rising inflation “still struggling with the cost-living crisis for families, pensioners and businesses”.

He said that the Chancellor “needs to take away the boulder action” starting with the Liberal Democrat scheme to reduce the energy bills by 2035 “.

Another measure of inflation, the retail price index (RPI) increased by 4.8% in July to 4.8% in June to 4.8%. RPI is different from CPI that it includes mortgage interest payment and building insurance.

It is also used to determine the upcoming hike in the train fares in England.

The price of this year’s railway fare 4.6% was a percentage point from RPI in July 2024, which means that if the same pattern was adopted, the fare would increase by 5.8% in 2026.

However, the Transport Department has said that no decision has been taken on the rent of next year so far “But our aim is that prices balance the power for both passengers and taxpayers”.